Content Assets

12 Months Ended

Dec. 31, 2023

Content Assets [Abstract]

Content Assets

Note 8 – Content Assets

Content assets consists of the following:

	December 31,		December 31,
	2023		2022
Original productions:
Programming costs released	$	34,311,305	$	31,081,500
In production		-		806,009
In development		8,089,560		8,377,649
Less: accumulated amortization (a)		(41,630,180)		(31,651,552)
Programming costs, net		770,685		8,613,606
Film library:
Film library acquisition costs		242,143,403		208,982,878
Less: accumulated amortization (b)		(181,745,110)		(125,967,305)
Film library costs, net		60,398,293		83,015,573
Licensed program rights:
Programming rights		63,001,943		56,288,723
Less: accumulated amortization (c)		(52,556,827)		(21,827,394)
Programming rights, net		10,445,116		34,461,329
Content assets, net	$	71,614,094	$	126,090,508

^(a) As of December 31, 2023 and 2022, accumulated amortization includes impairment expense of $10,352,207 and $10,352,207, respectively.

^(b) As of December 31, 2023 and 2022, accumulated amortization includes impairment expense of $30,274,236 and $8,595,099, respectively.

^(c) As of December 31, 2023, and 2022, accumulated amortization includes impairment expense of $0 and $0, respectively.

Original productions programming costs consists primarily of episodic television programs which are available for distribution through a variety of platforms, including Crackle. Amounts capitalized include development costs, production costs and direct production overhead costs.

Film library consists primarily of the cost of acquiring film distribution rights and related acquisition costs.

Costs related to original productions and film library are amortized in the proportion that revenues bear to management’s estimates of the ultimate revenues expected to be recognized from various forms of exploitation.

Licensed program rights consist of licenses to various titles which the Company makes available for streaming on Crackle and Redbox’s kiosks and streaming services for an agreed upon license period.

Amortization, including impairments of content assets is as follows:

	Year Ended
	December 31,
	2023		2022
Original productions	$	9,978,628	$	4,080,670
Film library		34,098,668		40,269,681
Licensed program rights		30,729,433		21,020,971
Content asset impairment		21,679,137		9,152,452
Total content asset amortization	$	96,485,866	$	74,523,774

For the years ended December 31, 2023 and 2022, the Company recognized content impairment charges of $21.7 million and $9.2 million, respectively. The impairments in 2023 principally relate to the under monetization of film distribution

rights in certain international territories and lower expected future monetization of domestic AVOD rights due to a contract modification in the fourth quarter of 2023 with a distributor, as well as lower performance on certain releases in 2023. The $9.2 million impairment of original programs and film distribution rights in 2022 related to lower monetization in 2022 resulting in decreased future revenues.